(i)the percentage increase in the retail prices index for the reference period, being a period determined, in relation to each periodic increase, under the rules, or

(ii)if lower, the default percentage for that period.

(4ZD)5Subsection (4) applies as if for paragraphs (a) and (b) there were substituted “the percentage increase which is the result of—

“(a)increasing the part of the annual rate of the pension mentioned in subsection (4ZC)(b) by—

(i)the percentage increase in the retail prices index for the 10reference period, being a period determined, in relation to each periodic increase, under the rules, or

(ii)if lower, the default percentage for that period,

while

(b)increasing the rest of the annual rate by—

(i)15the percentage increase in the consumer prices index for the reference period, or

(ii)if lower, the default percentage for that period.”

(4ZE)In subsections (4ZA) and (4ZC) “the relevant time” means—

(a)in relation to a pension which was in payment before 2011, the 20beginning of 2011;

(b)in any other case, the time when the pension becomes a pension in payment.

(4ZF)If only part of the pension is attributable to pensionable service or, as the case may be, to payments in respect of employment carried on on 25or after the appointed day, in subsections (4) to (4ZD) references to the annual rate of the pension are references to so much of that rate as is attributable to that part.

(4ZG)For the purposes of subsections (4) to (4ZD) the default percentage for a period is the percentage for that period which corresponds to—

(a)30in the case of a category X pension, 5% per annum, and

(b)in the case of a category Y pension, 2.5% per annum.

(4ZH)In subsections (4) to (4ZD)—

“consumer prices index” means—

(a)

the general index of consumer prices (for all items) 35published by the Statistics Board, or

(b)

where that index is not published for a month, any substituted index or figures published by the Board;

“retail prices index” means—

(a)

the general index of retail prices (for all items) published 40by the Statistics Board, or

(b)

where that index is not published for a month, any substituted index or figures published by the Board.”

“(2AA)In subsection (1) “relevant percentage increases” means percentage increases estimated by the Secretary of State from time to time for the purposes of paragraph 2(3)(a) of Schedule 3 to the Pension Schemes Act 51993 for revaluation periods of 12 months.”

16Pension compensation: annual increases in periodic compensation

(2)10In sub-paragraph (3) in paragraph (a) of the definition of “appropriate percentage” for “retail prices index” substitute “general level of prices in Great Britain”.

(3)After sub-paragraph (3) insert—

“(3A)For the purposes of paragraph (a) of the definition of “appropriate 15percentage” in sub-paragraph (3), the Secretary of State may (from time to time) decide, as the Secretary of State thinks fit, the manner in which percentage increases in the general level of prices in Great Britain are to be determined.

(3B)The Secretary of State must publish any decision made under sub-20paragraph (3A).”

(6)In sub-paragraph (4) in paragraph (a) of the definition of “the appropriate percentage” for “retail prices index” substitute “general level of prices in Great Britain”.

(7)After sub-paragraph (4) insert—

“(4A)30For the purposes of paragraph (a) of the definition of “the appropriate percentage” in sub-paragraph (4), the Secretary of State may (from time to time) decide, as the Secretary of State thinks fit, the manner in which percentage increases in the general level of prices in Great Britain are to be determined.

(4B)35The Secretary of State must publish any decision made under sub-paragraph (4A).”

17Indexation requirements for cash balance benefits

(1)Section 51 of the Pensions Act 1995 (annual increase in rate of certain pensions) is amended as follows.

(a)it has not, on or after the appointed day, been contracted-out by 10virtue of satisfying section 9(2) of the Pension Schemes Act 1993, or

(b)it has, on or after the appointed day, been so contracted-out, but no person is entitled to receive, or has accrued rights to, benefits under the scheme attributable to the period when it was so 15contracted-out.”

(4)After section 51ZA of the Pensions Act 1995 insert—

“51ZB Meaning of “cash balance benefit”

(1)For the purposes of section 51(7)(a), a pension provided to or in respect of a member of an occupational pension scheme is a “cash balance 20benefit” if conditions 1 and 2 are met.

(2)Condition 1 is that the rate of the pension is calculated by reference to a sum of money (“the available sum”) which is available under the scheme for the provision of benefits to or in respect of the member.

(3)Condition 2 is that under the scheme—

(a)25there is a promise about the amount of the available sum, but

(b)there is no promise about the rate or amount of the benefits to be provided.

(4)The promise mentioned in subsection (3)(a) includes in particular a promise about the change in the value of, or the return from, payments 30made under the scheme by the member or by any other person in respect of the member.

2020Financial assistance scheme: transfer of assets

In section 286 of the Pensions Act 2004 (financial assistance scheme) in subsection (3)(c) (power to make provision for property, rights and liabilities of qualifying pension schemes to be transferred to the scheme manager) for “the scheme manager” substitute “a prescribed person”.

25Miscellaneous

21Payment of surplus to employer: transitional power to amend scheme

(1)Section 251 of the Pensions Act 2004 (payment of surplus to employer: transitional power to amend scheme) is amended as follows.

(2)In subsection (1) after “scheme” insert—

“(a)30which is one to which section 37 of the Pensions Act 1995 applies, and

(b)”.

(3)After subsection (2) insert—

“(2A)But subsection (2) does not apply in the case of any of the payments 35listed in paragraphs (c) to (f) of section 175 of the Finance Act 2004 (authorised employer payments other than public service scheme payments or authorised surplus payments).”

“(6A)35Subsection (6B) applies in relation to a warning notice given to a person—

(a)in respect of a contribution notice under section 38, or

(b)in respect of a financial support direction under section 43.

(6B)Regulations may provide that no determination notice in respect of the 40contribution notice or the financial support direction may be given after the end of the prescribed period beginning with the day on which the warning notice is given.”

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23Technical amendment to Schedule 4 to the Pensions Act 2007

In Schedule 4 to the Pensions Act 2007 (abolition of contracting-out for defined contribution pension schemes) in paragraph 60(4) for paragraphs (b) and (c) substitute—

“(b)5in the definition of “the percentage for contributing earners”—

(i)omit the words “(a) in relation to a salary related contracted-out scheme,”;

(ii)omit paragraph (b) and the preceding “and”;

(c)10in the definition of “the percentage for non-contributing earners”—

(i)omit the words “(a) in relation to a salary related contracted-out scheme,”;

“(7)Until paragraph 60(4) of Schedule 4 to the Pensions Act 2007 comes into force, subsection (6) has effect as if the reference to the definition of “the percentage for contributing earners” or “the percentage for non-contributing earners” were a reference to paragraph (a) of either of 25those definitions.”

Part 4Judicial pensions

25Contributions towards cost of judicial pensions etc

30“Contributions

9AContributions towards cost of judicial pension etc

(1)The appropriate Minister may, by regulations made with the concurrence of the Treasury, make provision for and in connection with requiring contributions to be made towards the cost of the liability for 35relevant benefits.

(2)The prescribed contributions are to be—

(a)made by the person to or in respect of whom the relevant benefits are to be, or may be, provided;

(b)made for the person’s period of service in qualifying judicial 40office;

(c)in the form of deductions from the salary payable for that service.

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(3)But no contribution is to be made by a person—

(a)for any period of service during which an election under section 13 is in force in respect of the person;

(b)for any period of service after the person has completed, in the 5aggregate, 20 years’ service in qualifying judicial office;

(c)for any other prescribed period of service;

(d)in any prescribed circumstances.

(4)For the purposes of subsection (3)(b), it does not matter whether the person’s service in qualifying judicial office was service before or after 10the commencement of section 25(1) of the Pensions Act 2011 (but no contribution is to be made for a person’s service before that commencement).

Part 525Miscellaneous and general

Miscellaneous

26Grants by the Secretary of State to advisory bodies etc

(1)Section 174 of the Pension Schemes Act 1993 (grants by the Pensions Regulator to advisory bodies etc) is amended as follows.

(2)30After subsection (2) insert—

“(3)The Secretary of State may make grants on such terms and conditions as the Secretary of State thinks fit to any person or body of persons providing advice or assistance, or carrying out other prescribed functions, in connection with occupational or personal pensions.”

(3)35For the heading substitute “Grants to advisory bodies etc”.

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27Service of documents and electronic working

(1)After section 144 of the Pensions Act 2008 insert—

“144A Service of documents and electronic working

In sections 303 to 305 of the Pensions Act 2004 (service of documents 5and electronic working) references to that Act are to be treated as including references to the following provisions of this Act—

Chapters 2 and 3 of Part 1;

section 60(1)(c);

Chapter 1 of Part 3.”

(2)10In section 60 of that Act (requirement to keep records) in subsection (1)(c) for “, on request, to the Regulator” substitute “to the Regulator on receiving a notification requesting them”.

(3)In section 150 of that Act (extent) in subsection (2)(f) for “143 to 146” substitute “143, 144, 145 and 146”.

15General

28Extent

An amendment or repeal by this Act has the same extent as the enactment amended or repealed.

29Commencement

(1)20Any provision of Part 2 that amends another Act so as—

(a)to modify a power to make an order or regulations, or

(b)to confer any such power,

comes into force, for the purposes of the exercise of the power, on the day on which this Act is passed.

(2)25The following provisions of this Act come into force on that day—

(a)section 28;

(b)this section;

(c)section 30.

(3)The following provisions of this Act come into force at the end of the period of 302 months beginning with that day—

(a)section 1 (and Schedule 1);

(b)section 21;

(c)section 23;

(d)section 24.

(4)35The other provisions of this Act come into force in accordance with provision made by order by the Secretary of State.

(5)An order under subsection (4) may appoint different days for different purposes.

(6)The Secretary of State may by order make transitional, transitory or saving 40provision in connection with the coming into force of any provision of this Act.

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(7)An order under subsection (4) or (6) is to be made by statutory instrument.

30Short title

This Act may be cited as the Pensions Act 2011.

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SCHEDULES

Section 1

SCHEDULE 1Equalisation of and increase in pensionable age for men and women: consequential amendments

5Gas Act 1986 (c. 44)1986 (c. 44)

1In section 48 of the Gas Act 1986 (interpretation of Part 1) in subsection (2B)(b) for “6th April 1955” substitute “6th December 1953”.

Social Security Administration Act 1992 (c. 5)1992 (c. 5)

2The Social Security Administration Act 1992 is amended as follows.

310In section 2A (claim or full entitlement to certain benefits conditional on work-focused interview) in subsection (1A) for “6 April 1955” substitute “6 December 1953”.

Pensions Act 1995 (c. 26)1995 (c. 26)

6In section 126 of the Pensions Act 1995 (equalisation of and increase in 20pensionable age etc) in paragraph (a) for the words from “progressively” (where it appears first) to the end of the paragraph substitute “and then to increase it”.

Consumers, Estate Agents and Redress Act 2007 (c. 17)2007 (c. 17)

7In section 6 of the Consumers, Estate Agents and Redress Act 2007 (general 25provision about functions of National Consumer Council) in subsection (10)(b) for “6 April 1955” substitute “6 December 1953”.